Enterprise Value to EBITDA (EV/EBITDA)
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Bristol-Myers Squibb Co. pages available for free this week:
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Selected Financial Data since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Bristol-Myers Squibb Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance, as indicated by earnings metrics, demonstrates considerable fluctuation over the five-year period. While initial years show relative stability, a significant shift occurs in the later years, particularly in 2024, followed by a recovery in 2025.
- EBITDA Trend
- EBITDA exhibited a generally stable pattern between 2021 and 2023, ranging between approximately US$19.2 billion and US$20.1 billion. However, 2024 witnessed a substantial decline to US$3.2 billion, representing a significant contraction. A subsequent increase is observed in 2025, with EBITDA reaching US$15.2 billion, though remaining below pre-2024 levels.
- Relationship between Earnings Metrics
- The difference between EBITDA and EBIT remained relatively consistent from 2021 to 2023, suggesting stable depreciation and amortization expenses. The substantial decrease in EBIT in 2024, compared to the decrease in EBITDA, indicates a potentially larger impact from non-cash charges or other factors affecting the calculation of EBIT. The widening gap between EBIT and EBITDA in 2025 suggests a reversal of this trend.
- Net Earnings Correlation
- Net earnings attributable to the company generally followed the trend of EBITDA from 2021 to 2023, with a peak in 2023. The negative net earnings in 2024 directly corresponds with the sharp decline in EBITDA and EBIT, indicating a significant impact on overall profitability. The return to positive net earnings in 2025 aligns with the EBITDA recovery, though the level of net earnings remains lower than in 2021-2023.
- Earnings Before Tax (EBT) Analysis
- EBT mirrored the general trend of other earnings metrics, showing stability from 2021-2023 and a substantial decrease in 2024, followed by a recovery in 2025. The magnitude of the decline in EBT in 2024 was comparable to that of net earnings, suggesting tax implications were not the primary driver of the overall loss.
In summary, the period under review demonstrates a period of relative stability disrupted by a significant downturn in 2024, followed by a partial recovery in 2025. The substantial fluctuations in EBITDA, EBIT, EBT, and net earnings suggest underlying operational or external factors warranting further investigation.
Enterprise Value to EBITDA Ratio, Current
Bristol-Myers Squibb Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | |
| Amgen Inc. | |
| Danaher Corp. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| Thermo Fisher Scientific Inc. | |
| Vertex Pharmaceuticals Inc. | |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | |
| EV/EBITDA, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Bristol-Myers Squibb Co., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| EV/EBITDA, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited considerable fluctuation over the five-year period. Initial values indicated a relatively stable, though elevated, valuation, followed by a period of significant volatility and eventual stabilization.
- Enterprise Value
- Enterprise Value demonstrated an initial increase from US$173,993 million in 2021 to US$181,761 million in 2022. A substantial decrease was then observed in 2023, falling to US$126,048 million. Subsequent years saw partial recovery, reaching US$152,789 million in 2024 and US$156,517 million in 2025. This suggests potential shifts in the company’s capital structure, market perception, or acquisition activity.
- EBITDA
- EBITDA experienced a slight decline from US$20,118 million in 2021 to US$19,221 million in 2022, followed by a modest increase to US$19,366 million in 2023. A dramatic reduction occurred in 2024, with EBITDA falling to US$3,168 million. A significant rebound was then recorded in 2025, bringing EBITDA to US$15,230 million. This volatility in EBITDA likely reflects changes in operational performance or accounting adjustments.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 8.65 in 2021 and increased to 9.46 in 2022, indicating a higher valuation relative to earnings. A decrease to 6.51 in 2023 suggested improving value. However, the ratio spiked dramatically to 48.23 in 2024, driven by the substantial decline in EBITDA. The ratio then decreased to 10.28 in 2025, as EBITDA recovered, but remained above the levels observed in 2021 and 2022. The large fluctuation in 2024 warrants further investigation to understand the underlying drivers of the EBITDA decline.
The considerable changes in the EV/EBITDA ratio highlight the importance of considering both enterprise value and EBITDA when assessing the company’s valuation. The 2024 spike is particularly noteworthy and suggests a period of significantly reduced profitability relative to the company’s overall value.